Understanding the New Homestead Exemption, Property Tax Changes, and What Homeowners Should Do Next
Florida homeowners have some important property tax changes ahead following the approval of Amendment 3 in the November 3, 2026 general election.
The amendment expands Florida's homestead property tax exemption and reduces the annual assessment increase cap for non-homestead properties. For homeowners, prospective buyers, and real estate investors throughout the Florida Keys, understanding these changes can help with future property tax planning.
Here's a closer look at what Amendment 3 means and what Monroe County property owners should know.
What Is Florida Amendment 3?
Amendment 3 changes how certain Florida properties are assessed and taxed, with new provisions taking effect January 1, 2027.
The most significant change is an increase in the homestead exemption for qualifying primary residences. The amendment also provides additional assessment protections for non-homestead properties, including second homes, investment properties, and commercial real estate.
1. A Larger Homestead Exemption for Primary Residences
Florida's homestead exemption reduces the taxable assessed value of an eligible homeowner's primary residence.
Under Amendment 3, the homestead exemption for property taxes other than school district taxes increases to:
- 2027: $150,000
- 2028: $250,000
- 2029 and beyond: Adjusted annually for inflation
For example, a qualifying homeowner with a property assessed at $500,000 could eventually have up to $250,000 of that value exempt from applicable non-school property taxes.
Importantly, this does not mean every homeowner will save the same amount. Actual savings depend on assessed value, applicable exemptions, local tax rates, and individual eligibility.
The increased exemption does not apply to school district property taxes.
2. Changes for Second Homes and Investment Properties
Amendment 3 also changes the annual assessment increase cap for qualifying non-homestead properties.
Previously, annual increases in assessed value were generally capped at 10% for applicable non-school property taxes.
Beginning in 2027, that cap decreases to 5%.
This change is particularly relevant throughout the Florida Keys, where second homes, vacation properties, rental properties, and commercial real estate are an important part of the local market.
However, the cap limits annual increases in assessed value, not property tax bills themselves. Changes in tax rates, ownership, improvements, and other factors can still affect a property's tax obligation.
3. What About New Florida Residents?
Amendment 3 includes an important provision for individuals who were not Florida residents as of December 31, 2026.
New qualifying residents may initially receive the existing homestead exemption, with eligibility for the increased exemption beginning in their fifth year of qualification, subject to applicable constitutional requirements.
This distinction may be important for buyers planning to relocate to the Florida Keys and establish a permanent residence.
What Does This Mean for Florida Keys Real Estate?
Property taxes are an important consideration when buying, owning, or investing in Florida Keys real estate.
For primary homeowners, the expanded homestead exemption may reduce the taxable value of eligible properties for non-school taxes.
For second-home owners and investors, the lower non-homestead assessment cap may provide additional protection against large annual increases in assessed property value.
For buyers, these changes reinforce the importance of reviewing estimated property taxes before purchasing a home. A property's current tax bill may not reflect what a new owner will pay following a transfer of ownership.
Amendment 3 also affects local government property tax revenue and budgeting. The actual impact on Monroe County services and future tax rates will depend on local assessments, budgets, and decisions by taxing authorities.
Don't Forget to Apply for Your Florida Homestead Exemption!
If you've purchased a home in the Florida Keys and plan to make it your permanent residence, don't wait to review your eligibility for Florida's Homestead Exemption.
The Monroe County Property Appraiser is currently accepting applications for the 2027 tax year.
To qualify, homeowners generally must own and occupy the property as their permanent residence as of January 1 of the applicable tax year and meet Florida's eligibility requirements.
The regular application deadline is March 1, 2027.
How to Apply in Monroe County
You can apply online through the Monroe County Property Appraiser's Office at www.mcpafl.org or visit the office at:
Monroe County Property Appraiser
500 Whitehead Street
Key West, FL 33040
Phone: 305-292-3420
When preparing your application, you may need:
- Florida driver's license or identification card reflecting your residence
- Florida vehicle registration, if applicable
- Social Security number
- Florida voter registration or Declaration of Domicile
- Property ownership information, such as your recorded deed
- Additional documentation establishing permanent residency, if requested
If your property already has a homestead exemption, it generally renews automatically as long as ownership and residency requirements remain satisfied. However, changes in ownership, title, or residency can affect eligibility.
Not sure whether your property currently has a homestead exemption? Contact the Monroe County Property Appraiser's Office to verify your status and determine whether any additional action is necessary.
Local Knowledge Matters
Property taxes are just one of the many considerations that make buying and owning real estate in the Florida Keys unique.
At Berkshire Hathaway HomeServices Keys Real Estate | Knight & Gardner Realty, our Forever Agents understand the importance of helping buyers and sellers navigate the local real estate market with confidence.
Whether you're purchasing your primary residence, exploring a second home, selling a waterfront property, or considering an investment in the Florida Keys, our team is here to help you make informed real estate decisions.
Visit KeysRealEstate.com to connect with a local real estate professional serving Key West, the Lower Keys, Marathon, Islamorada, and Key Largo.
Important Disclaimer
This article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Property tax exemptions, assessment limitations, and eligibility requirements vary based on individual circumstances. Homeowners and prospective buyers should consult the Monroe County Property Appraiser, Florida Department of Revenue, or a qualified tax professional for guidance specific to their property. Information reflects publicly available details regarding Florida Amendment 3 as of November 4, 2026. Implementation procedures and applicable requirements may be subject to further guidance or legislative action.
